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ARCTIC BROADBAND Recommendations for an Interconnected Arctic

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ARCTIC BROADBAND Recommendations for an Interconnected Arctic ARCTIC BROADBAND Recommendations for an Interconnected Arctic Telecommunications Infrastructure Working Group Table of Contents ` AEC Chair Messages . .2 Message from AEC chair, Tara Sweeney ` Executive Summary . .3 I am incredibly proud of the hard work and dedication demonstrated by the ` I . Introduction . .5 members of the Telecommunications Infrastructure Working group. The pan-Arctic engagement evident throughout this document exhibits the strong commitment of ` II . Key Issues . .6 the Arctic business community to support the Arctic Economic Council’s four core principles of partnership, collaboration, innovation and peace. ` III . The Current State of Broadband in the Arctic . .14 Being raised in rural Alaska, I have a deep understanding for the importance of ` IV . Funding Options . .19 connectivity and the challenges that come with a lack of reliable communications. ` V . Past, Current and Proposed Projects . 22. Expanding broadband access and adoption will be vital for the economic, social and political growth of local Arctic communities. It is my hope that these ` VI . Goals and Recommendations . .27 recommendations add value to the ongoing discussion of broadband deployment ` VII . Conclusion . 30. in the Arctic, and serve as a tool for policy makers, investors, researchers and communities to come together for sustainable polar growth. ` AEC Telecommunications Infrastructure Working Groups . 31. ` Citations . .37 Message from AEC Telecommunications Infrastructure Working Group chair, Robert McDowell The recommendations provided in this report are the result of a true collaborative effort among the business community within the eight Arctic states. Together, local Arctic residents and expert broadband advisors have combined their knowledge to establish a comprehensive strategy for the deployment and adoption of broadband in the far north – a first of its kind. To the members of the Telecommunications Infrastructure Working group, I thank you for your unwavering commitment and invaluable input contributed throughout this process. May this document mark the beginning of increased broadband access in the Arctic, and encourage continued work in the field of broadband deployment throughout the circumpolar north. 1 | Arctic Broadband: Recommendations for an Interconnected Arctic | Winter 2016 arcticeconomiccouncil.com | [email protected] | 2 Executive Summary exploration and other business activities may facilitate improved access to private finance. This document identifies numerous policy initiatives, such as those that adopt market mechanisms to promote more efficient With its beautiful scenery, harsh climate, significant indigenous population and increasing geopolitical spectrum use that may attract private investment in broadband. Public-private partnerships (PPPs) can also importance, the Arctic is unique. The challenges posed by the Arctic to broadband deployment and be an effective tool to promote delivery of broadband services to Arctic populations, and this document adoption are also unlike any on the planet. With this in mind, the dual purposes of the Recommendations enumerates concrete steps governments and regulators can take to foster PPPs. Lastly, government support for an Interconnected Arctic are to take stock of the current state of broadband in the Arctic, and to make of Arctic broadband deployment is an option and can take a number of forms, including subsidies, tax recommendations as to how to facilitate broadband deployment and adoption. incentives and the creation of universal service funds. This document begins by exploring how each Arctic state (Canada, Denmark, Finland, Iceland, Norway, Past, current and proposed broadband deployment projects are the next topic addressed. Among these Russia, Sweden and United States of America) defines broadband and the goals each has established for are the Quintillion project that will build and operate a privately-funded, 1,850 km long subsea fiber optic broadband deployment. Typically, Arctic states define broadband in terms of data transmission speed or system that will initially run along the north and west coast of Alaska; and a project funded by Nornickel, have established transmission speed goals. Several Arctic states have established speed goals of 100 Mbit/s a privately-owned Russian mining and metallurgical company that will construct a 957 km long fiber optic by the year 2020. cable laid through the Yamal-Nenets Autonomous Region and Krasnoyarsk Territory. Numerous other projects are also described. Next, this document lays out some of the overarching societal benefits of broadband. From the economy and healthcare to scientific research and public safety – broadband has the potential to positively affect This document concludes by identifying goals and recommendations for Arctic broadband deployment and nearly every sector of society. It facilitates and enhances our daily lives in ways once unimaginable. Indeed, adoption. Included among these are examples of potential legal, regulatory, and business practice reforms broadband has the power to transform society and enable new and more robust ways of interacting with and strategies that the private sector, NGOs and local, indigenous, provincial, and national governments could one another. undertake to facilitate deployment. For example, governments could modernize tax structures to incentivize private investment in broadband and make more spectrum available. At the same time, the Arctic poses extreme challenges. The region is characterized by a dispersed population, harsh climate and lower rates of broadband adoption than non-Arctic regions. This document discusses these As to adoption, this document encourages the private and public sectors to work together to address barriers and other challenges that must be considered and surmounted in order to expand broadband in the Arctic. to entry, including cost, and to further promote digital literacy. These Recommendations for an Interconnected Arctic note that a comprehensive strategy for the Arctic requires a multi-pronged approach focused on ways to promote deployment while encouraging broadband demand. Understanding current broadband usage by country is a necessary first step in realizing the ultimate goal of making the technology universally available in the region. As such, this document looks at current broadband deployment in each Arctic state. All but one Arctic state have overall broadband coverage rates of 90 percent or higher. The following assessment then provides an overview of some of the existing technologies that may facilitate Arctic broadband deployment. Technologies such as optical fiber, mobile wireless and satellite each have positive and negative aspects that should be considered and evaluated. No single technology is appropriate for all situations. Rather, broadband deployment in the Arctic likely requires a combination of various technologies. Next, funding options are explored. Private investment may be difficult to attract to Arctic broadband projects given the high cost of deployment and often small clusters of customers. Nevertheless, expanded oil and gas 3 | Arctic Broadband: Recommendations for an Interconnected Arctic | Winter 2016 arcticeconomiccouncil.com | [email protected] | 4 I . Introduction II . Key Issues The interconnectivity of people, communities, governments, businesses and beyond is one of the hallmarks A. BROADBAND PERSPECTIVES of these opening decades of the 21st century. Reliable broadband is necessary to promote and advance interconnectivity, which in turn facilitates improvements in national economies, education, health, and many In general terms, broadband refers to telecommunications services that provide multiple channels of data other sectors of society. Despite these benefits, broadband deployment and adoption across the globe have over a single communications medium, typically using some form of frequency or wave division multiplexing.1 not been uniform. One region in danger of being left behind is the Arctic. More specific definitions vary, with no international consensus as to how broadband should be defined.2 As Recognizing this, private sector representatives from each nation state with territory in the Arctic – Canada, discussed below, the majority of Arctic states define broadband in terms of data transmission speed or have 3 Denmark, Finland, Iceland, Norway, Russia, Sweden and the United States of America – have come together to set transmission speed goals. take stock of the current state of broadband in the Arctic and consider how to promote greater interconnectivity. This document is the result of this unprecedented collaboration. However, it is not the end point. Given the 1. Country Definitions/Goals constant progression of technology generally, and broadband specifically, strategies designed to advance Canada broadband deployment and adoption must necessarily be iterative. Two regulatory agencies – the Innovation, Science and Economic Development (ISED) agency and the This document proceeds in five substantive sections. Section II provides a snapshot of broadband in the Arctic, Canadian Radio-Television and Telecommunications Commission (CRTC) – have jurisdiction over broadband- including the current state of broadband coverage and adoption, challenges to expanding broadband and related issues in Canada. The ISED defines broadband as an “Internet service that is always on (as opposed technologies available to facilitate broadband deployment. Section III
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